Franchising: a regulatory overview

We have been assisting a range of higher education providers in connection with franchising and subcontractual matters; the regulatory focus in this area has intensified considerably over recent months.

Developments include:

• From 31 March 2026, OfS brought ongoing condition E10 into effect which applies additional requirements to in-scope lead providers under “relevant subcontractual arrangements”;
• Changes have been made to Regulatory advice 9: Accounts direction to require in-scope providers to publish a subcontractual rationale and information about retained course fees for accounting periods ending on or after 1 July 2026;
• New reportable events have been added to Regulatory advice 16 relating to condition E10 and subcontractual arrangements;
• Regulations come into effect from 19 May 2026 to implement the requirement for certain delivery providers to apply for registration with the OfS by 30 June 2026 in order for their courses to be designated for student support for new students from 1 September 2028 as outlined here;
• Government guidance has been released relating to the registration requirement, to be read alongside the government’s response to the consultation on strengthening oversight of HE partnership delivery;
• The OfS has commenced a consultation on proposed ongoing condition C6 “treating students fairly”.  If implemented as proposed C6 will apply to a broad range of arrangements, including franchised provision. The C6 provisions may come into effect from autumn 2026, with some phased implementation.

The wide variety of arrangements in the sector and regulatory initiatives make it increasingly complex for institutions to navigate compliance.  If you need advice on any of these matters, please contact your usual Mills & Reeve contact or a member of our education team.

Further blogs will consider elements of the above in more detail.

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